This invention generally relates to inventory systems. More specifically, the invention relates to methods and systems for matching inventory—both raw materials and finished goods—to orders.
Inventory management in a manufacturing plant, such as a seel mill, is very important, and also just as difficult. During production process, there are several reasons that lead to increase inventory levels at a plant. Customers can cancel an order already in process or even finished. Efficient lot sizes do not match perfectly to the exactly amount of material needed to fulfill customers orders. Material deviates from original specification and is unassigned from customer order. Material bought from third part producer sits and wait for assignment to customer orders. No matter the reason, having material sitting unassigned in inventories holds the cash flow and, therefore, companies try to minimize such material.
In addition, early during a planning cycle for a steel mill, available material is applied to the orders if certain properties of the orders and of the available material match. At that time, however, material surface defects are not considered. Right before the finishing scheduling process begins, additional information becomes available about the quality of the material. It is possible that because of deviations from the planned quality, certain material may not be deliverable to the client. If these quality deviations invalidate the delivery, then it becomes necessary to search for other coils that may already be assigned to other order to meet customer requests. This may require swapping coils to find the best match between available coils and the orders requiring them.